CORPORATIVISM
IN MONEY AND BANKING HAS LED AMERICA TO FASCISMPART 2 of 3

By
Dr. Edwin Vieira, Jr., Ph.D., J.D.
July 2, 2012

NewsWithViews.com

When
Franklin Roosevelt put such a scheme into effect throughout American
industry in the National Industrial Recovery Act of 1933,[4]
the Supreme Court, in an unanimous opinion, denounced it, saying: “Such
a delegation of legislative power is unknown to our law and is utterly
inconsistent with the constitutional prerogatives and duties of Congress.”[5]
In the face of this decision, the only reasons the Federal Reserve System
still exists are that: (i) it was not subsumed in the National Industrial
Recovery Act in 1933, but was the product of a different statute enacted
in 1913; and (ii) the Supreme Court has never heard a case challenging
the System on those grounds (and probably never will).

That
the Federal Reserve System has usurped a set of powers “unknown
to our law and * * * utterly inconsistent with the constitutional prerogatives
and duties of Congress” must have the most seriously deleterious
consequences.

In
general, through corporativism special-interest groups employ their
political influence in order to obtain economic control over some segment
of the economy. That economic control increases the power of those groups,
enabling them to garner even more political influence.

In
the area of money banking, in particular, corporativism leads inevitably
to all-around fascism. This is because banking organized on corporative-state
lines is inherently unstable, for at least three reasons:

First,
fractional-reserve banking amounts to a Ponzi scheme. The banks promise
to pay their depositors on demand money they do not keep in reserve.
Therefore, if withdrawals exceed reserves, they must pay earlier depositors
with later depositors’ money, or with proceeds from outstanding
loans which themselves may or may not be fully paid.

Second,
a government’s reliance on a central bank to monetize public
debt will amount to a Ponzi scheme, too, at the point where new debt
must be incurred simply to service old debt.

Third,
a currency unit based upon debt will tend seriously to depreciate
in value over time, even when it starts out redeemable in gold or
silver.

Faced
with these problems, to keep its head above water the Federal Reserve
System has been compelled constantly to expand the set of those individuals
and institutions who or which use, or are forced to use, its
currency and to incur debt. Having established its currency as national
“legal tender” in 1933, having removed the restraints of
required redemption in gold in 1933 (domestically) and 1971 (internationally),
having tied the Treasury of the United States to a policy of endless
monetization of public debt, having obtained the ability to manipulate
and loot domestic markets in the guise of making what is euphemistically
called “monetary policy”, and even having assumed the imperialistic
rôle of a “world central bank” emitting a “world
reserve currency” which has enabled it and its clients to loot
markets across the globe—having done all this, nevertheless the
Federal Reserve System now finds itself confronted with serial crises,
for which only one solution appears workable: an even greater
expansion of fiat currency, bank credit, and United States
Treasury debt, to be dumped on a world increasingly less willing to
accept it, in exchange for valuable natural resources and cheap human
labor.

Such
hyperbolic economic imperialism will fail, however, unless it is coupled
with political imperialism. And political imperialism in service of
what used to be denounced as “the Money Power” will not
succeed unless it is backed up by outright military imperialism,
“the iron fist in an iron glove”—because foreign nations
will not sit still for long while their economies are manipulated from
London, New York City, and the District of Columbia; while their natural
resources are extracted at bargain-basement prices; and while their
populations are hired at coolie wage-rates and then paid in ever-depreciating
Federal Reserve paper currency, bank credits, and United States Treasury
debt. Which resistance, far more plausibly than the so-called “war
on terrorism”, explains the metastasis of American military bases
throughout the world over the last several decades, and especially the
doctrine of “preëmptive war”—that is, naked aggression—enunciated
by the George W. Bush régime and continued by the Obama régime.[6]

Domestically,
too, the Federal Reserve System finds itself increasingly on the defensive.
The Federal Reserve’s currency—both paper and electronic—is
based entirely upon debt. As the level of both public and private debt
becomes unsustainable, the longevity of that currency becomes problematical.
Hyperinflation seems a not unlikely cause of death. So crises in banking
and in public finance are proliferating at all levels of America’s
federal system—setting the stage for an economic catastrophe,
because apparently too many Americans who could influence events in
a positive direction are too stubborn to admit that, when an unsound
currency stands on the brink of self-destruction, a sound alternative
currency should be introduced into the economy as soon as possible.

Average
Americans, of course, may not understand why all this is happening—but
they do realize that it is happening, and that their own livelihoods,
standards of living, and hopes for a decent education, long-term employment,
and a comfortable retirement are in jeopardy. The 99% are not blind
to which the 1% are doing. They observe the big bankers and their cronies
being bailed out financially, immunized from prosecution politically,
and infused statutorily with even more abusive powers “unknown
to our law and * * * utterly inconsistent with the constitutional prerogatives
and duties of Congress”—while the common man receives nothing
in the near term and in the long term will be forced pay for all the
bail outs, quantitative easings, and other financial chicanery through
increased taxation, inflation, and austerity.

If
not stopped and punished, this naked looting of the economy and massive
redistribution of wealth from the middle class to le gratin financier
can only inflame the populace, leading first to social unrest, then
to civil disobedience, and finally to violent resistence. But the banking
cartel and its allies have no intention of attenuating their avarice.
So, domestically, a nationwide para-military police-state apparatus
must be—and even as I speak is being—put into place at breakneck
speed, in order to clamp down on dissenters and compel the common man
to accept whatever economic stringencies are necessary to save the banking
system.

In
the final analysis, all of this—imperialism abroad, repression
at home—arises, and had to arise, out of the corporative-state
nature of America’s central banking system. More than that, imperialism
in search of what could be called economic Lebensraum, coupled
with the imposition of a domestic police state, is the essence of full-blown
fascism. So, finally, the fruit of monetary and banking corporativism,
in all its bitterness, falls from the tree:

The
big banks, financial houses, and dens of speculators which Americans
are told are “too big to fail” have failed and will
continue to fail. But the politicians will relieve them of the
weight of their failures by shifting that load of moan onto the backs
of ordinary citizens. That is, in the fascist lexicon, “too big
to fail” really means “to big to pay”. “Too
big to fail” means that someone else will be compelled to pay
the price through taxes, through inflation, and through enforced austerity
in living standards—someone else who cannot afford to pay, and
is neither legally nor morally obligated to pay. The government can
fail—as it has failed by becoming the mere puppet of the big banks,
financiers, and speculators. The economy can fail—as it has failed
with the Great Depression of the 1930s, with alternating recessions
and “bubbles” thereafter, and now with the looming specter
of depression, hyperinflation, or hyperinflation followed by depression.
Even the people can fail— with untold economic suffering, political
instability, and social dislocations, rather than peace and prosperity,
their lot. But the big banks, financial houses, and their favored clients
and political whores cannot be suffered to fail, or even allowed to
suffer.

Thus
America has arrived at the point of superordination of bank to state,
and subordination of society to bank and state, the point at which the
complex of bankers, financial speculators, and crony politicians has
become so entrenched, and so puissant both economically and politically,
that it can openly operate according to the principle: “It is
not the State which gives orders to us, it is we who give orders to
the State!” This noxious principle cannot be overemphasized, because
perhaps its most famous exponent was no less than Adolf Hitler, who
made precisely that statement, at the 1934 Nazi Reichsparteitag.[7]
Pay attention to that, because the ultimate significance of this parallel
will be explained anon.

It
is amazing, nonetheless, how the free market has managed to cope with
these problems until now. Yet, for all that, the free market is not
omnipotent. So heavy a burden, so great a strain have been put on it,
that it is breaking down. And it must collapse entirely if the unit
of currency is destroyed, because then the entire structure of prices
and the possibility of rational economic calculation will go, too.

Worse
yet, as a consequence of political and economic failures at the highest
levels, America’s ship of state is about to embark upon the historically
uncharted waters of social failure. As the political system proves impotent
to cage the gigantic financial predators, but instead sets them loose
to feed upon the people as upon so many tethered sheep, and aids and
abets them in doing so—as the economic system melts down—as
middle-class standards of living give way to ever-deepening austerity—massive
civil unrest and disobedience will ensue. Some people bereft of economic
hope may simply shoot themselves in despair, as that poor Greek pensioner
did not so long ago. But others may descend to such a depth of hatred
and a desire to take vengeance on their oppressors that they will decide
to shoot someone else instead. Heaven forefend that such events might
occur! Yet the prudent man must take into account the possibility that
God may finally have washed His hands of this whole sordid matter, and
left it to mere mortals to sort out as best they can.

The
Money Power is well aware of these dire possibilities. Through its own
incompetence, hubris, and greed it has rashly torn open Pandora’s
Box, and released a panoply of evils, for which it knows but one remedy:
in the true spirit and practice of fascism, to unleash police-state
oppression aimed at every American who steps out of line. After all,
protecting the perpetrators of financial fraud by repressing their victims
is nothing new. In the 1930s, as a consequence of the collapse of the
Federal Reserve System, Americans were forced to accept irredeemable
Federal Reserve Notes as “legal tender”, were prohibited
from enforcing contracts payable in gold, and were dispossessed of their
gold, all for the benefits of the banks “too big to fail”.

But
the likely extent and duration of the coming catastrophe is so great
that mere monetary and banking repression will not suffice. This is
the real, if recondite reason for the Department of Homeland Security—not
to combat Muslim fanatics, hiding in squalid caves and huts in Obscuristan,
who “hate our freedoms”; but instead to suppress average
Americans who have had enough of a domestic political and economic system
that is purposefully destroying their freedoms.

Be
clear about this: America’s Reichssicherheitshauptamt
is not preparing for the hard times ahead by stockpiling gold, but by
stockpiling lead. From 2009 through early 2012 the Department
of Homeland Security and the Federal Bureau of Investigation contracted
for the delivery of some 750 million rounds of .40 Smith & Wesson
caliber hollow-point ammunition.[8]

Why
do these armed agencies of the General Government expect to need to
have 750 million rounds of such ammunition on hand during the next few
years? As everyone the least familiar with firearms knows, .40 S&W
hollow-point ammunition is not simply an anti-personnel round, but is
specifically an anti-civilian round, because under the Hague
Convention,[9]
and the Rome Statute of the International Criminal Court,[10]
it cannot be used in international warfare.[11]
So this ammunition can be expected to be employed only in “the
homeland” and only on civilian residents of “the
homeland”. Therefore, the Department of Homeland Security anticipates
that a situation is likely to arise in the near future in which armed
agents of the General Government will have to kill or maim Americans
on a very large scale. (And this is only one major agency, stockpiling
one type of cartridge, for one type of firearm.)

Worse
yet, speaking at the Northwestern University School of Law on 5 March
2012, the Attorney General of the United States attempted to defend
the Obama régime’s policy of “official assassinations”.
In this, he was unsuccessful, from the point of view of a constitutional
justification.[12]
But fascists do not worry about constitutional justifications. The point
of the exercise was not to assuage Americans’ concerns (if any
they have) about killing a few rogue Americans, let alone foreigners,
who engage in acts of supposed “terrorism” against the United
States. It was to announce that any American whom the Executive Branch,
through some secret procedure, labels an “enemy combatant”
or “terrorist” can simply be killed, entirely outside of
and without recourse to judicial process—with no formal charges,
no indictment, no trial, no conviction, no sentence, and of course no
possible appeal from the far side of the River Styx. It is hard not
to conclude that this provides the final proof of the the complete political
and moral bankruptcy of this country’s ruling class. Because,
once again, the applicable parallel runs to none other than Adolf Hitler
and his address to the German Reichstag on 13 July 1934, in
which he declared that, in his self-appointed capacity as “supreme
judge of the German People” (“das deutschen Volkes oberster
Gerichtsherr”) he could order the assassination of anyone
whom he considered a threat to the state. And everyone even minimally
conversant with history knows where that episode led.

So,
recall Roosevelt’s State of the Union Address in 1944, and ask,
“Who really won World War II?” Why,

•
Adolf Hitler, politically—because America now has a régime
based upon das Führerprinzip which claims the power
to murder anyone it chooses, at home or abroad; even

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•
Hideki Tojo, internationally—because the Greater East Asia Co-Prosperity
Sphere is now being carved out, not by Japan, but by China, and with
the assistance of turncoat American globalist corporations; and ultimately,
perhaps even

•
Otto von Bismarck—because the world is likely to witness the
establishment of a new Dreikaiserbund, not among Imperial
Germany, Russia, and Austria (as Bismarck recommended), but among
Germany, Russia, and China.

And
the root cause of these defeats for America? The control the big banks,
financial houses, and speculators exercise over the General Government:
that is, the integration of bank and state. For part three click below.

1.
To be sure, these were not Roosevelt’s own, original ideas, but
instead derived from his formative experiences in the Woodrow Wilson
Administration. See Thomas Fleming, The New Dealer’s
War: F.D.R. and the War within World War II (New York, New York:
Basic Books, 2001), at 326 & note 39.2.The Federalist No. 10.3.
U.S. Const. preamble.4.
Act of 16 June 1933, ch. 90, 48 Stat. 195.5.
A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 537 (1935).6.
Actually, this “Bush Doctrine” is nothing new. It is merely
the logical expansion of old “Brezhnev Doctrine” now embossed
with the Stars and Stripes rather than the Hammer and Sickle. Under
“the Brezhnev Doctrine”, the Soviet Union claimed the right
to invade any country among its satellites that deviated too far from
the Communist Party line as enunciated in Moscow. Under “the Bush
Doctrine”, the United States claims the right to impose crippling
economic sanctions upon, to ring with military bases, and if those tactics
do not work then to launch ersatz “wars of national liberation”,
to bomb, and even to invade, any country, without distinction, that
refuses to subordinate its economy to the dictates of the Financial
Axis that runs from London, through New York City, to the District of
Columbia.7.
Recorded on film by Leni Riefenstahl in “Triumph des Willens”.8.
2009—DHS-ICE entered into a contract for 200,000,000 rounds of
.40 S&W ammunition over the ensuing five years. 2011—FBI awarded
a contract for up to 100,000,000 rounds of .40 S&W ammunition over
the ensuing five years. 2012—DHS awarded a contract for 450,000,000
rounds of .40 S&W ammunition over the ensuing five years.9.
Declaration III (1899).10.
Part 2, Article 8, § 2(b)(xix).11.
This prohibition stems from the Declaration of St. Petersburg (1868).12.
See my demolition of Holder’s contentions in “Where
is the Outrage?”13.Quotations From Chairman Mao Tse-tung (Peking, China: Foreign
Languages Press, 1966), at 72.14.Observations on the Act of Parliament, commonly called the Boston
Port-Bill; with Thoughts on Civil Society and Standing Armies (London,
England: Edward and Charles Dilly, 1774), at 50.

Edwin Vieira, Jr., holds four
degrees from Harvard: A.B. (Harvard College), A.M. and Ph.D. (Harvard
Graduate School of Arts and Sciences), and J.D. (Harvard Law School).

For more than thirty years he has
practiced law, with emphasis on constitutional issues. In the Supreme
Court of the United States he successfully argued or briefed the cases
leading to the landmark decisions Abood v. Detroit Board of Education,
Chicago Teachers Union v. Hudson, and Communications Workers of America
v. Beck, which established constitutional and statutory limitations on
the uses to which labor unions, in both the private and the public sectors,
may apply fees extracted from nonunion workers as a condition of their
employment.

He has written numerous monographs
and articles in scholarly journals, and lectured throughout the county.
His most recent work on money and banking is the two-volume Pieces
of Eight: The Monetary Powers and Disabilities of the United States
Constitution (2002), the most comprehensive study in existence of American
monetary law and history viewed from a constitutional perspective. www.piecesofeight.us

He is also the co-author (under
a nom de plume) of the political novel CRA$HMAKER:
A Federal Affaire (2000), a not-so-fictional story of an engineered crash
of the Federal Reserve System, and the political upheaval it causes. www.crashmaker.com